It can happen to anyone. Through no fault of your own, you find yourself in the unfortunate situation where you've lost your job through ill health or been made redundant. Nevertheless, the bills keep mounting up and you no longer have the money to pay them. In such circumstances debt counselling could be the answer to your personal financial problems. Always remember that:

The longer you leave the problem, the worse it is likely to get

Unopened bills don't mean the problem has disappeared!

STEPS TO TAKE

Cut down on any overspending

Prioritise your debts

Get specialist help

Don't ignore your creditors - try to negotiate terms with them

Work out what you can afford to repay

LOANS

Consolidation loans may help, but a word of caution: they are expensive!

Your bank may also offer to help you

DEBTS TO PAY FIRST

Mortgages - to avoid repossession

Council tax - failure to pay can lead to a court summons and prison

MORTGAGE ARREARS

Even if you are in arrears it may be possible to remortgage

Remortgaging may be expensive - but it’s better than losing your home

REPOSSESSION

If the lender sells your home for less than you owe them they may pursue you for the balance for years to come